Renting a condo entails other upfront costs besides the actual renting cost. These costs are easy to miss when people are planning to move. This article presents a breakdown of the costs involved in finding and living in a condo in Singapore.
Know your budget
Before you even start looking for that perfect condo for you and maybe your family, you need to have a good idea of how much you are willing to put as rent. List down your current monthly expenses in order of their importance. Usually, it is advisable to keep your monthly household budget below 35%. The household budget includes internet, electricity bills, water bills, and other utility bills.
Now let’s get to the overall expense of renting a condo in Singapore. A standard lease period of a condo in Singapore range between one to two years. Most landlords prefer 2 years, with the minimum lease period being 6 months.
Upfront renting charges
Let’s take an example of a S$8,000 monthly condo rental. Normally, you will have to pay an advance of S$8,000 which is equivalent to 1 month’s rent upon signing a letter of intent. After this, an equal amount of refundable deposit for a 1-year lease, or S$16,000 for a 2year lease. The refundable deposit is paid to the landlord upon signing a tenancy agreement.
Most landlords in Singapore use agents. For a 1-year lease, you will be required to pay your grant a commission which is half month your rent S$4,000 and the same amount if you renew your contract for a second year. So in total, that is S$8,000 for a 2 year renting. Then there are stamp duties which are 5% of the rent per year, S$400.
During the tenancy
During your stay in the condo, you will pay S$8,000 per month. To avoid rent delays, it is most recommended that you set up an automatic monthly wire transfer from your bank account. As per your monthly utility and electricity bills, you can add between S$300 to S$400 depending on your usage. Some of the utilities in renting a condo in Singapore are optional. However, you can estimate TV bills to be S$70 and S$80 for internet bills.
For air-conditioner maintenance, expected to spend between $150 and $200 per quarter. Most landlord offer to take care of air conditioner in case it breaks down. These cost of renting a condo is Singapore should give you a rough picture of your monthly, quarterly and annual expenses.
End of tenancy
When moving out, you need to and over the condo back to the owner in an official manner. This is fair both to the landlord and the new tenant about to occupy the condominium. To leave everything in place and working, budget a S$300 for minor repairs, same amount for curtains to be washed and S$100 for the condo to be thoroughly cleaned.
The importance of a proper financial plan for renting a condo in Singapore helps to identify all cost. You can also research on related cost such as moving back and forth between your condo and place of work to help you decide which neighborhood suit you best.